* During December 2011 we made a one-time early payment of $9.9 million to the Israeli Office of Chief Scientist, representing the full balance of the contingent liability related to the NP-4 and NPA grants received. Upon making this payment, we have eliminated all future royalty obligations related to our anticipated NP-4 and NPA revenues and saved the associated future interest payments related to such obligations. This amount was excluded from the non-GAAP statements of operations as it represents future royalty obligations.
** Taxes on income represent the non-cash utilization of a deferred tax asset with respect to the Company's estimate of its accumulated taxable income in accordance with FASB ASC 740. During 2011, EZchip Technologies, the Company's main subsidiary completed the utilization of the deferred tax asset, and started to enjoy the ten year period of exemption from Israeli corporate taxes due to benefits provided pursuant to its Israeli approved and privileged enterprise programs.
*** In calculating diluted non-GAAP net income per share, the diluted weighted average number of shares outstanding excludes the effects of stock-based compensation expenses in accordance with FASB ASC 718.
EZchip Semiconductor Ltd.
Condensed Consolidated Balance Sheet
(U.S. Dollars in thousands)
December 31, December 31,
2011 2010
------------ ------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and marketable
securities $ 126,770 $ 101,310
Trade receivables, net 8,655 8,988
Other receivables 1,837 1,178
Inventories 5,788 4,522
Deferred tax assets, net -- 3,443
------------ ------------
Total current assets 143,050 119,441
NON CURRENT ASSETS:
Severance pay fund 5,215 5,209
Long term investment and others 337 335
------------ ------------
Total non current assets 5,552 5,544
PROPERTY AND EQUIPMENT, NET 828 419
Goodwill 96,276 96,276
Intangible assets, net 1,205 1,181
------------ ------------
TOTAL ASSETS $ 246,911 $ 222,861
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,319 $ 1,289
Other payables and accrued expenses 6,352 6,569
------------ ------------
Total current liabilities 8,671 7,858
LONG TERM LIABILITIES:
Accrued severance pay 6,081 5,974
SHAREHOLDERS' EQUITY:
Share capital 155 149
Additional paid-in capital 288,641 271,959
Accumulated other comprehensive income
(loss) (960) 540
Accumulated deficit (55,677) (63,619)
------------ ------------
Total shareholders' equity 232,159 209,029
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 246,911 $ 222,861
============ ============
